Investor / Vendor · San Diego, CA · Member since 2016 · 1k+ posts · 949 votes
8y
@Account Closed
The top dog question depends on what market you operate in. Since you're new, if you're in a competitive market it ain't going to happen anytime soon especially in super competitive markets like LA where people are dropping 5 figures a month on just direct mail marketing not to mention their other pipelines.
If you do direct mail correctly with enough targets then you can expect solid results. I have a game plan, checklist of things to prepare before DM, and scripts to practice for talking to sellers and listening for distress and motivation if you want, just hit me up.
That is a rough rule of thumb that is as helpful as the 2% rule lol - very debatable. Conversion rates differ greatly between someone that knows how to talk to sellers and communicate key info, and is terrible for newbies who start out and have no idea how to talk to sellers. Solid leads fall through the cracks when people make 3 common mistakes
1) not pick up right away or let calls go to voicemail routinely
2) not knowing that most sellers lie and that by educating them you can get some of them to reach a reasonable price
3) NOT FOLLOWING UP PROPERLY - many people don't even know what a CRM is...
Rental Property Investor · Los Gatos, CA · Member since 2017 · 123 posts · 131 votes
8y
@Jeff Jerma I believe mailers are a wholesalers best friend. They get you straight to the owner which cuts out the agents making it a easier deal to sell with a little meat on the project for the flipper. Yeah those numbers aren't too far off, about 1 out of every 5,000 mailers produce a deal. Another item to keep in mind is your buyers. When you get your property under contract how easily will you be able to get rid of it.
Investor / Vendor · San Diego, CA · Member since 2016 · 1k+ posts · 949 votes
8y
@Account Closed
The top dog question depends on what market you operate in. Since you're new, if you're in a competitive market it ain't going to happen anytime soon especially in super competitive markets like LA where people are dropping 5 figures a month on just direct mail marketing not to mention their other pipelines.
If you do direct mail correctly with enough targets then you can expect solid results. I have a game plan, checklist of things to prepare before DM, and scripts to practice for talking to sellers and listening for distress and motivation if you want, just hit me up.
That is a rough rule of thumb that is as helpful as the 2% rule lol - very debatable. Conversion rates differ greatly between someone that knows how to talk to sellers and communicate key info, and is terrible for newbies who start out and have no idea how to talk to sellers. Solid leads fall through the cracks when people make 3 common mistakes
1) not pick up right away or let calls go to voicemail routinely
2) not knowing that most sellers lie and that by educating them you can get some of them to reach a reasonable price
3) NOT FOLLOWING UP PROPERLY - many people don't even know what a CRM is...
Austin, TX · Member since 2017 · 145 posts · 24 votes
8y
@Ray Lai thanks again ray! how do i compete with people who are throwing thousands of dollars a week on direct mail when im only doing one letter a month?
Do you suggest doing one letter a month or one letter a week?
Investor / Vendor · San Diego, CA · Member since 2016 · 1k+ posts · 949 votes
8y
@Account Closed
Definitely ever 3-4 weeks per mailing. The reason is that distress and motivation usually take some stimulus event to occur like lost job, health crises, relocation, etc. and if you're targeting once every 3-4 weeks you're not over-mailing and getting ignored, but you're mailing frequently enough that they remember you and your company.
Follow-up is the key. Most people spend tons of direct mail and let it go to voicemail and lose out on a lot of valuable leads. You're a real estate agent so you should be available 24/7 and you should have the ability to communicate well to increase your conversion rates. This isn't something you just read about and boom you're #1, it takes a lot of hard work and practice. I can share with you tips and a solid roadmap on how to get there, but you're the one that has to do the hard work to make it happen.
Tons of people come on here and talk how they are so hardworking and most quit without even doing a full campaign because they had unrealistic expectations on how the process works and most never even learn how to effectively talk to sellers.
Austin, TX · Member since 2017 · 145 posts · 24 votes
8y
@Ray Lai agreed again ray! I do well at sales so im pretty sure ill be okay with converting these guys. As everything, there will be a learning curve but i already have a head start so ill be good to go!
Rental Property Investor · Encino, CA · Member since 2016 · 324 posts · 178 votes
8y
I agree 100% with what everyone said above. I would add to consider finding mentors or others who are crushing it in your market to really scale up your business as fast as possible.
Pick one marketing strategy and go crush it. Also, I would learn how to skip trace all the leads that don't call you.
Weston, MA · Member since 2016 · 74 posts · 45 votes
8y
I disagree. Its 2017, people need to look into digital marketing. Everyone talks about Direct Mail, but if everyone is talking about it, that means everybody in your market, as a wholesaler, is doing direct mail.
My suggestion, invest your money into building a website and learn about digital marketing. Who is looking forward to going home to looking through their mail, especially if these are distressed homeowners. Physical mail is either for a bill or a check, everything else seems garbage. Plus, Direct Mail has a 1-2% response rate. So, for every 100 letters you send, you will get maybe 1 person callling you. From there it is a 50% chance they want to sell and another 50% chance that they will accept your offer. So already we are at 1/4 of a lead for every 100 people.
Weston, MA · Member since 2016 · 74 posts · 45 votes
8y
Marketing is cluttered everywhere. Every business wants your attention. The question is how do you navigate through the clutter so that you can stand out. My site is set to launch in one week. My goal is to use digital marketing strategies (i.e. SEO, Facebook Ads, Google Ads, Email Marketing, Content Marketing, Social Media Marketing, etc). At least I can provide actual numbers through Google Analytics to show how my investment in marketing is providing me with leads that convert to deals.
Real Estate Professional · San Antonio, TX · Member since 2017 · 28 posts · 11 votes
8y
Hey @Account Closed has the right idea if you want to grow and dominate in your market.
The people that you are mailing to are the same people that your competitors are mailing to. If people are interested, but don't want to call, they'll go online to research who is sending them mail. If you don't have an online presence, the only people they'll see when they search are your competitors.
I'd highly recommend getting or building a website that is setup to convert above the fold, start an AdWords, Facebook, or Bing paid campaign, and start producing content that you can share around to get links back to your site (this will help increase your SEO ranking over time). I've had many of our customers use this strategy to take their businesses to the next level, so it is definitely worth looking into. If I can be any more help on the topic, just let me know!